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© kritchanut dreamstime.com Business | January 20, 2016

Microchip won the battle for Atmel – $3.56 billion deal on its way

After its proposal was deemed superior to Dialog's, Microchip has now signed a definitive agreement to acquire Atmel for USD 8.15 per share in a combination of cash and Microchip common stock.
The acquisition price represents a total equity value of about USD 3.56 billion, and a total enterprise value of about USD 3.40 billion, after excluding Atmel’s cash and investments net of debt on its balance sheet of approximately USD 155.0 million at December 31, 2015.

“We are delighted to welcome Atmel employees to Microchip and look forward to closing the transaction and working together to realize the benefits of a combined team pursuing a unified strategy. As the semiconductor industry consolidates, Microchip continues to execute a highly successful consolidation strategy with a string of acquisitions that have helped to double our revenue growth rate compared to our organic revenue growth rate over the last few years. The Atmel acquisition is the latest chapter of our growth strategy and will add further operational and customer scale to Microchip,” said Steve Sanghi, President and CEO of Microchip.

“Microchip and Atmel have a strong tradition of innovation, stretching across microcontroller, analog, touch, connectivity and memory solutions. Joining forces and combining our product portfolios will offer our customers a richer set of solution options to enable innovative and competitive products for the markets they serve,” said Ganesh Moorthy, COO of Microchip.

The transaction has been approved by the Board of Directors of each company and is expected to close in the second quarter of calendar year 2016, subject to approval by Atmel’s stockholders, regulatory approvals and other customary closing conditions.
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